UBS On-Air: Market Moves Top of the Morning: CIO Strategy Snapshot - Labor data, Trade update, DC roundup
Jun 9, 2025
Jason Draho, the Head of Asset Allocation Americas at UBS, shares insights on key market movers, including the latest labor market data and upcoming US-China trade talks. He discusses how the recent Trump-Musk split may influence Trump 2.0 economic policies. The conversation also highlights market performance trends, with a notable rise in the S&P 500 and investor sentiment shifting towards risk-taking. Lastly, Jason offers strategies for navigating these fluctuating markets and optimizing asset allocation amidst changing economic conditions.
AI Snips
Chapters
Transcript
Episode notes
Labor Market Showing Gradual Moderation
- The labor market is still relatively strong but showing gradual moderation without a sharp slowdown.
- Tariffs pose a potential drag, but immediate impact on jobs is not evident yet, suggesting a slowing economy without crisis.
Market Embraces Risk and Cyclicals
- Market performance last week was led by small caps and cyclically oriented sectors, signaling increased risk appetite.
- Rising interest rates and a lower VIX index suggest markets view downside economic risks as contained for now.
Trump-Musk Split’s Limited Policy Impact
- The feud between Trump and Elon Musk likely has little impact on Trump 2.0 economic policies.
- Musk's political influence had already been waning before his departure from the administration.